SME Strategy Guide - Question 0: Why bother with a strategy?
- Nov 18, 2024
- 3 min read
Updated: Dec 2, 2024
This is part 2 of our strategy series. For part 1, click the button below.
What is a strategy?
The simplest way to think about a strategy is a deliberate, thoughtful and researched plan of how an organisation will use it’s time, money, and resources to get from where they are today, to a future they want to be in.
The big factors of why a strategy is useful
The future is uncertain, success is far from guaranteed: we need to have some thought about what we might want it to look like, and how we’ll deal with the uncertainty.
People & teams cannot think or plan beyond a few months at a time: we can put the effort in to write a strategy, but we often get drawn back into short-term thinking, we need some North Star to guide us
We need a sense of progress to keep moving forward: If we don’t know what good looks like, how will we know when we’ve gotten there? A strategy gives that sense of achievement (if you deliver it!)
Businesses can’t stumble along doing the same thing they’ve always done because the external context changes. You need to have clarity so you can respond and act as time progresses.
Strategy is a broad term, and different areas of an organisation can have their own strategy. You’ll hear terms like ‘marketing strategy’, ‘product strategy’, or ‘fundraising strategy’ to explain how different parts of the organisation wish to move into the future. Overall, these sit under a general ‘business strategy’ that sets the tone for everything else beneath it.
Do you need a strategy?
Yes. Unless you want to guarantee failure. Before that puts you off, a strategy doesn’t mean a 50 page presentation or a wordy business plan. A strategy can be as long, or as short as you want it to be, but you need to have one.
You need a strategy because without one,
Where are you going? What’s your focus and direction? This is as important for solo founder as well as within a team.
What sets you apart from your competitors? Why should your customers care about you? You need to know your special sauce.
How will you know if you’re making progress? It’s vital to mark and recognise success so you can make sure you’re on the right path.
What makes a good strategy?
The short answer is ‘one that works’.
The long answer is that it’s a combination of vision, values, objectives and measures that have been broadly researched, and narrowly defined.
The best answer is both of the above statements, but also one that was created in collaboration with the people around you.
If you’re a small business owner, writing a strategy in isolation might seem the only way, but you’ll have customers, suppliers, and mentors you can involve in writing it to ensure you’re being challenged and pushed to explore every option.
Actions to complete
Before you get started with the first of the 8 steps to building a strategy, here's how you can lay the groundwork:
Look at companies and organisations you value or aspire to be like, and find their strategies online. What do you like, dislike, or find difficult to understand with these?
Think about the people you want to involve in creating the strategy. Team members, coaches, suppliers, and customers are just some of the people you can engage with.
Collect all previous business plans, strategies, post-it notes, or WhatsApp messages to people where you’ve talked about your business, find the common threads and map them out somewhere.
